Advanced Microeconomic Theory - ECON 510-002
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Advanced Microeconomic Theory
ECON 510-002
Sérgio O. Parreiras
Department of Economics
University of North Carolina
Spring, 2022
Parreiras Microeconomic Theory Spring, 2022 1 / 29
Outline
1 Syllabus
Class Information
Goals
Coverage
Research
Exam Dates and Grading Policy
Policies
Student Support Services
First Week To Do List
Class Discussion
Assignments
2 On Math
3 FAQ
Parreiras Microeconomic Theory Spring, 2022 2 / 29
Outline
1 Syllabus
Class Information
Goals
Coverage
Research
Exam Dates and Grading Policy
Policies
Student Support Services
First Week To Do List
Class Discussion
Assignments
2 On Math
3 FAQ
Parreiras Microeconomic Theory Spring, 2022 2 / 29Outline
1 Syllabus
Class Information
Goals
Coverage
Research
Exam Dates and Grading Policy
Policies
Student Support Services
First Week To Do List
Class Discussion
Assignments
2 On Math
3 FAQ
Parreiras Microeconomic Theory Spring, 2022 2 / 29Syllabus Class Information
ECON 510-002
Advanced Microeconomic Theory
1 Tuesdays and Thursdays, 12:30PM–1:45PM at Gardner 308
2 Email: sergiop@unc.edu.
3 Use Sakai messages instead of regular email for priority reply.
4 Office hours (OH) are by Sakai appointment only:
Wed: 3–4PM and Fri: 11AM–12PM.
To schedule an OH meeting use Sakai > Sign-up. The sign-up
opens a week before and closes one day before the OH meeting.
Do not hesitate to email-me to schedule meetings outside regular
OH if your schedule conflicts with the regular OH.
Parreiras Microeconomic Theory Spring, 2022 3 / 29Syllabus Goals
Course Objectives
Our main learning goals are to acquire tools to:
1 construct models of micro-economic behavior,
2 identify their (built-in) limitations and
3 think critically about how to apply them to real-life.
4 write a research essay/proposal/project
Parreiras Microeconomic Theory Spring, 2022 4 / 29Syllabus Goals
On Exactitude in Science
Jorge Luis Borges, Collected Fictions, translated by Andrew Hurley.
“In that Empire, the Art of Cartography attained such Perfection that
the map of a single Province occupied the entirety of a City, and the
map of the Empire, the entirety of a Province. In time, those
Unconscionable Maps no longer satisfied, and the Cartographers Guilds
struck a Map of the Empire whose size was that of the Empire, and
which coincided point for point with it. The following Generations,
who were not so fond of the Study of Cartography as their Forebears
had been, saw that that vast Map was Useless, and not without some
Pitilessness was it, that they delivered it up to the Inclemencies of Sun
and Winters. In the Deserts of the West, still today, there are Tattered
Ruins of that Map, inhabited by Animals and Beggars; in all the Land
there is no other Relic of the Disciplines of Geography.
Suarez Miranda,Viajes de varones prudentes, Libro IV,Cap. XLV,
Lerida, 1658.”
Parreiras Microeconomic Theory Spring, 2022 5 / 29Syllabus Goals
On Exactitude in Science
Jorge Luis Borges, Collected Fictions, translated by Andrew Hurley.
“In that Empire, the Art of Cartography attained such Perfection that
the map of a single Province occupied the entirety of a City, and the
map of the Empire, the entirety of a Province. In time, those
Unconscionable Maps no longer satisfied, and the Cartographers Guilds
struck a Map of the Empire whose size was that of the Empire, and
which coincided point for point with it. The following Generations,
who were not so fond of the Study of Cartography as their Forebears
had been, saw that that vast Map was Useless, and not without some
Pitilessness was it, that they delivered it up to the Inclemencies of Sun
and Winters. In the Deserts of the West, still today, there are Tattered
Ruins of that Map, inhabited by Animals and Beggars; in all the Land
there is no other Relic of the Disciplines of Geography.
Suarez Miranda,Viajes de varones prudentes, Libro IV,Cap. XLV,
Lerida, 1658.”
Parreiras Microeconomic Theory Spring, 2022 5 / 29Syllabus Goals
On Exactitude in Science
Jorge Luis Borges, Collected Fictions, translated by Andrew Hurley.
“In that Empire, the Art of Cartography attained such Perfection that
the map of a single Province occupied the entirety of a City, and the
map of the Empire, the entirety of a Province. In time, those
Unconscionable Maps no longer satisfied, and the Cartographers Guilds
struck a Map of the Empire whose size was that of the Empire, and
which coincided point for point with it. The following Generations,
who were not so fond of the Study of Cartography as their Forebears
had been, saw that that vast Map was Useless, and not without some
Pitilessness was it, that they delivered it up to the Inclemencies of Sun
and Winters. In the Deserts of the West, still today, there are Tattered
Ruins of that Map, inhabited by Animals and Beggars; in all the Land
there is no other Relic of the Disciplines of Geography.
Suarez Miranda,Viajes de varones prudentes, Libro IV,Cap. XLV,
Lerida, 1658.”
Parreiras Microeconomic Theory Spring, 2022 5 / 29Syllabus Goals
On Exactitude in Science
Jorge Luis Borges, Collected Fictions, translated by Andrew Hurley.
“In that Empire, the Art of Cartography attained such Perfection that
the map of a single Province occupied the entirety of a City, and the
map of the Empire, the entirety of a Province. In time, those
Unconscionable Maps no longer satisfied, and the Cartographers Guilds
struck a Map of the Empire whose size was that of the Empire, and
which coincided point for point with it. The following Generations,
who were not so fond of the Study of Cartography as their Forebears
had been, saw that that vast Map was Useless, and not without some
Pitilessness was it, that they delivered it up to the Inclemencies of Sun
and Winters. In the Deserts of the West, still today, there are Tattered
Ruins of that Map, inhabited by Animals and Beggars; in all the Land
there is no other Relic of the Disciplines of Geography.
Suarez Miranda,Viajes de varones prudentes, Libro IV,Cap. XLV,
Lerida, 1658.”
Parreiras Microeconomic Theory Spring, 2022 5 / 29Syllabus Goals
Mont Sainte Victoire
Photography vs Cézanne
Parreiras Microeconomic Theory Spring, 2022 6 / 29Syllabus Goals
Mont Sainte Victoire
Photography vs Cézanne
Parreiras Microeconomic Theory Spring, 2022 6 / 29Syllabus Goals
Books
Required book:
Boldrin, Michele and Levine, David K.
Against intellectual monopoly, any edition or format.
Recommended Book:
Spulber, Daniel
The Case of Patents, any edition or format.
Parreiras Microeconomic Theory Spring, 2022 7 / 29Syllabus Goals
Reaching Our Goals
In this course, we will read and discuss Bouldrin and Levin’s book
“Against intellectual monopoly” in order to be exposed to real-life,
contemporary, economic issues.
However, as “Against intellectual monopoly” is intended to a
general audience (lawyers, policy makers, etc...), it lacks any
explicit economic modeling.
Most of this course will be devoted to studying the microeconomic
models covered in our lecture notes, which we will then apply to
some of the topics discussed in “Against intellectual monopoly”.
We will learn how to use computer algebra package, Mathematica,
which will be an indispensable tool.
Parreiras Microeconomic Theory Spring, 2022 8 / 29Syllabus Coverage
Tentative Coverage
Besides all the chapters of “Against Intellectual Monopoly”, we shall cover
the following topics.
1 Mathematics: Taylor’s rule and the Chain Rule
2 Review: Consumer Theory with Many Goods
3 Duality in Consumer Theory
4 Revealed Preferences
5 Welfare Analysis
6 Market Structure and Innovation
7 R&D Races
Parreiras Microeconomic Theory Spring, 2022 9 / 29Syllabus Research
Research
Econ 510 is a research-intensive course.
Research readings and assignments will be posted weekly on Sakai.
Students will work on a final research project. The topic of the
project will be on “intellectual property”.
Parreiras Microeconomic Theory Spring, 2022 10 / 29Syllabus Exam Dates and Grading Policy
Evaluation
March 8th — 1st Midterm
April 17th — 2nd Midterm
May 3rd, Tuesday, 12PM — Final Examination
Midterm grades account for 30% of the final grade.
Final examination grade is worth 35% of the final grade.
Ten or more problem sets, research readings, and quizzes: 20%.
Final Research Project: 10%.
Attendance and active participation: 5%.
The weight of any missing midterm (with proper justification) is
transferred towards the final exam.
Parreiras Microeconomic Theory Spring, 2022 11 / 29Syllabus Exam Dates and Grading Policy
Computing Grades
Exam grades are converted into scores accordingly to:
Score = Exam Grade + 100 − max(Top Exam Grade, 50).
Assignments scores are identical to assignment grades.
Course grades are computed accordingly to the table:
letter grade min. score
A 95
A- 90
B+ 87
B 83
B- 80
C+ 77
C 73
C- 70
D+ 67
D 60
Parreiras Microeconomic Theory Spring, 2022 12 / 29Syllabus Policies
Policies
Attendance Policies: As stated in the University’s Class Attendance Policy, no right or
privilege exists that permits a student to be absent from any class meetings, except for
these University Approved Absences:
1 Authorized University activities
2 Disability/religious observance/pregnancy, as required by law and approved by
Accessibility Resources and Service and/or the Equal Opportunity and Compliance
Office (EOC)
3 Significant health condition and/or personal/family emergency as approved by the
Office of the Dean of Students, Gender Violence Service Coordinators, and/or the
Equal Opportunity and Compliance Office (EOC).
Class Policy: Attendance is required in this course. No make-up will be provided for
non-approved absences. In the case of an approved absence, please contact me ASAP.
University Approved Absence Office (UAAO): The UAAO website provides information and
FAQs for students and faculty related to University Approved Absences.
Honor Code
All students are expected to follow the guidelines of the UNC honor code. In particular,
students are expected to refrain from “lying, cheating, or stealing” in the academic context.
If you are unsure about which actions violate the honor code, please see me or consult
honor.unc.edu.
Parreiras Microeconomic Theory Spring, 2022 13 / 29Syllabus Policies
Policies
Syllabus changes I reserve to right changes to this syllabus, including exams and
assignments dates, course format delivery, etc... Any change will be promptly
communicated.
Course Delivery As long as it is possible to do so safely, we will be meeting in person this
semester. I understand the ongoing COVID-19 pandemic may require changes to this plan
and will be monitoring the situation closely. If I need to change the format of the course
temporarily due to outbreaks of illness, I will announce this via email and the course Sakai
site.
Mask Use This semester, while we are in the midst of a global pandemic, all enrolled
students are required to wear a mask covering your mouth and nose at all times in our
classroom. This requirement is to protect our educational community—your classmates and
me–as we learn together. If you choose not to wear a mask, or wear it improperly, I will ask
you to leave immediately, and I will submit a report to the Office of Student Conduct.
Students who have an authorized accommodation from Accessibility Resources and Service
have an exception. For additional information, see Carolina Together.
Parreiras Microeconomic Theory Spring, 2022 14 / 29Syllabus Student Support Services
Student Support Services
The University of North Carolina at Chapel Hill facilitates the implementation of
reasonable accommodations, including resources and services, for students with
disabilities, chronic medical conditions, a temporary disability or pregnancy
complications resulting in barriers to fully accessing University courses, programs and
activities. Accommodations are determined through the Office of Accessibility
Resources and Service (ARS) for individuals with documented qualifying disabilities
in accordance with applicable state and federal laws. See the ARS Website for contact
information: ars.unc.edu or email ars@unc.edu.
Any student who is impacted by discrimination, harassment, interpersonal
(relationship) violence, sexual violence, sexual exploitation, or stalking is encouraged
to seek resources on campus or in the community. Please contact the Report and
Response Coordinators in the Equal Opportunity and Compliance Office
(reportandresponse@unc.edu), Counseling and Psychological Services (confidential),
or the Gender Violence Services Coordinators (gvsc@unc.edu; confidential) to discuss
your specific needs. Additional resources are available at safe.unc.edu
CAPS is strongly committed to addressing the mental health needs of a diverse
student body through timely access to consultation and connection to clinically
appropriate services, whether for short or long-term needs. Go to their website:
caps.unc.edu or visit their facilities on the third floor of the Campus Health Services
building for a walk-in evaluation to learn more.
Parreiras Microeconomic Theory Spring, 2022 15 / 29Syllabus First Week To Do List
To do list for the first week
1 If you are eligible for taking exams with Accessibility Resources,
please schedule with them within the first or second week of
classes and notify me.
2 If a) you have more than 3 final exams in more than 24 hours; b)
ECON510 is one of these exams; and c) you wish to re-schedule
one of your exams; then you MUST ask for an alternative date
before the first midterm. If you do not follow these procedures
your request will not be accommodated.
3 Place an order for the software Mathematica throughout
software.sites.unc.edu/software/mathematica/. The student
license is free. However, you must place an order.
Parreiras Microeconomic Theory Spring, 2022 16 / 29Syllabus First Week To Do List
To do list for the first week
1 If you are eligible for taking exams with Accessibility Resources,
please schedule with them within the first or second week of
classes and notify me.
2 If a) you have more than 3 final exams in more than 24 hours; b)
ECON510 is one of these exams; and c) you wish to re-schedule
one of your exams; then you MUST ask for an alternative date
before the first midterm. If you do not follow these procedures
your request will not be accommodated.
3 Place an order for the software Mathematica throughout
software.sites.unc.edu/software/mathematica/. The student
license is free. However, you must place an order.
Parreiras Microeconomic Theory Spring, 2022 16 / 29Syllabus First Week To Do List
To do list for the first week
1 If you are eligible for taking exams with Accessibility Resources,
please schedule with them within the first or second week of
classes and notify me.
2 If a) you have more than 3 final exams in more than 24 hours; b)
ECON510 is one of these exams; and c) you wish to re-schedule
one of your exams; then you MUST ask for an alternative date
before the first midterm. If you do not follow these procedures
your request will not be accommodated.
3 Place an order for the software Mathematica throughout
software.sites.unc.edu/software/mathematica/. The student
license is free. However, you must place an order.
Parreiras Microeconomic Theory Spring, 2022 16 / 29Syllabus First Week To Do List
Class Discussion
During this course, we shall employ additional material from TV,
movies, or literature to discuss strategic related issues.
Sometimes, you may find the political or religious views; or the
profanity contained in the additional material offensive or
objectionable and you may feel uncomfortable.
I do not endorse any particular views ex but ...
Parreiras Microeconomic Theory Spring, 2022 17 / 29Syllabus First Week To Do List
Class Discussion
During this course, we shall employ additional material from TV,
movies, or literature to discuss strategic related issues.
Sometimes, you may find the political or religious views; or the
profanity contained in the additional material offensive or
objectionable and you may feel uncomfortable.
I do not endorse any particular views ex but ...
Parreiras Microeconomic Theory Spring, 2022 17 / 29Syllabus First Week To Do List
Class Discussion
During this course, we shall employ additional material from TV,
movies, or literature to discuss strategic related issues.
Sometimes, you may find the political or religious views; or the
profanity contained in the additional material offensive or
objectionable and you may feel uncomfortable.
I do not endorse any particular views ex but ...
Parreiras Microeconomic Theory Spring, 2022 17 / 29Syllabus Class Discussion
Class Discussion
I believe that as part of your university education, it is important you
engage in critical thinking ,
while respecting different opinions expressed by your classmates. I will
strive to maintain a welcoming and inclusive environment even when
we discuss uncomfortable topics.
Parreiras Microeconomic Theory Spring, 2022 18 / 29Syllabus Class Discussion
Real-life Applications
To discuss real-life applications, it is recommended that you read at
least one newspaper regularly, and pay special attention to economic
relevant events.
Moreover, if you are heading to graduation and the job-market I
suggest you follow a major newspaper such as the New York Times or
Wall Street Journal. Another good source of economic news is the
NPR podcast Planet Money.
Parreiras Microeconomic Theory Spring, 2022 19 / 29Syllabus Assignments
Assignments
1 Assignments are posted on Sakai.
2 Past due assignments are not accepted without proper
justification.
3 Please be prepared to present and discuss the PS.
4 Most problem sets will be assigned to groups.
5 New groups will be formed randomly for each PS.
6 The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Spring, 2022 20 / 29Syllabus Assignments
Assignments
1 Assignments are posted on Sakai.
2 Past due assignments are not accepted without proper
justification.
3 Please be prepared to present and discuss the PS.
4 Most problem sets will be assigned to groups.
5 New groups will be formed randomly for each PS.
6 The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Spring, 2022 20 / 29Syllabus Assignments
Assignments
1 Assignments are posted on Sakai.
2 Past due assignments are not accepted without proper
justification.
3 Please be prepared to present and discuss the PS.
4 Most problem sets will be assigned to groups.
5 New groups will be formed randomly for each PS.
6 The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Spring, 2022 20 / 29Syllabus Assignments
Assignments
1 Assignments are posted on Sakai.
2 Past due assignments are not accepted without proper
justification.
3 Please be prepared to present and discuss the PS.
4 Most problem sets will be assigned to groups.
5 New groups will be formed randomly for each PS.
6 The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Spring, 2022 20 / 29Syllabus Assignments
Assignments
1 Assignments are posted on Sakai.
2 Past due assignments are not accepted without proper
justification.
3 Please be prepared to present and discuss the PS.
4 Most problem sets will be assigned to groups.
5 New groups will be formed randomly for each PS.
6 The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Spring, 2022 20 / 29Syllabus Assignments
Assignments
1 Assignments are posted on Sakai.
2 Past due assignments are not accepted without proper
justification.
3 Please be prepared to present and discuss the PS.
4 Most problem sets will be assigned to groups.
5 New groups will be formed randomly for each PS.
6 The grading criteria for the PS are:
grade solutions work presentation
4.0 correct explained reasonable
3.5 comput. err. explained reasonable
3.0 concept. err. explained reasonable
2.0 – omitted reasonable
1.0 – – poor
0 – – –
Parreiras Microeconomic Theory Spring, 2022 20 / 29Syllabus Assignments
Some words about math.
We will cover bits of optimization, set theory and proof reasoning but I
assume you have knowledge equivalent to Osborne’s (suggested
reading) mathematical appendix – please browse it – and please, do
report any doubts or questions to me as soon as possible I can help
you. Or check topics 1 to 2.3 in Martin Osborne’s tutorial.
Language of Set Theory
Basic Calculus (derivation and integration).
Probability (expectation of random variables)
Reading Proofs.
Finding Maxima and Minima.
Parreiras Microeconomic Theory Spring, 2022 21 / 29On Math
Mathematics is a tool (language)
Parreiras Microeconomic Theory Spring, 2022 22 / 29On Math
Mathematics is a tool (language)
If f : [a, b] → R satisfies [∀x ∈ [a, b] and ∀ε > 0, ∃δ > 0; such that
|x − y| < δ ⇒ |f (x) − f (y)| < ε]
⇒ ∃z ∈ [a, b]; ∀x ∈ [a, b] f (z) ≥ f (x).
If a real-function defined on a closed interval on the real line is
continuous then it attains a maximum on the interval.
Parreiras Microeconomic Theory Spring, 2022 23 / 29On Math
Mathematics is a tool (language)
If f : [a, b] → R satisfies [∀x ∈ [a, b] and ∀ε > 0, ∃δ > 0; such that
|x − y| < δ ⇒ |f (x) − f (y)| < ε]
⇒ ∃z ∈ [a, b]; ∀x ∈ [a, b] f (z) ≥ f (x).
If a real-function defined on a closed interval on the real line is
continuous then it attains a maximum on the interval.
Parreiras Microeconomic Theory Spring, 2022 23 / 29FAQ
Questions & Answers
I understand the lecture notes but during the exams I am not able to
answer the questions. What am I doing wrong? How should I study for
this class?
The only way to make sure you understood the material is to solve
problems. Try to work in groups and try to solve as many problems as
you can. Do not be frustrated if you get stuck with a problem. The
problems where you get stuck are precisely the ones that are useful for
your study. They should serve as a guide to where the focus of your
reading should go and to which questions you should bring to class.
Parreiras Microeconomic Theory Spring, 2022 24 / 29FAQ
Questions & Answers
I understand the lecture notes but during the exams I am not able to
answer the questions. What am I doing wrong? How should I study for
this class?
The only way to make sure you understood the material is to solve
problems. Try to work in groups and try to solve as many problems as
you can. Do not be frustrated if you get stuck with a problem. The
problems where you get stuck are precisely the ones that are useful for
your study. They should serve as a guide to where the focus of your
reading should go and to which questions you should bring to class.
Parreiras Microeconomic Theory Spring, 2022 24 / 29FAQ
Questions & Answers
I am trying to solve problems but many of the posted or suggested problems
lack an answer key. How can I check if my work is correct? What use is to
solve a problem if I do not know whether my solution is correct?
The point of solving problems is not to come up with a right answer but
rather to elicit questions that you may have about the material. If you are
unsure about your work or answer this is good signal. Please do bring the
problem to class and express your doubts. If you faced a challenge when
trying to solve a problem and you are not sure of your answer or not sure on
how to proceed at some step, chances are, your colleagues have similar
questions and it is worth to discuss it in class.
The lack of an answer key is, for most of the cases, deliberate . It is designed
to give incentives for you to work the problems rather than trying to
memorizing solutions.
Parreiras Microeconomic Theory Spring, 2022 25 / 29FAQ
Questions & Answers
I am trying to solve problems but many of the posted or suggested problems
lack an answer key. How can I check if my work is correct? What use is to
solve a problem if I do not know whether my solution is correct?
The point of solving problems is not to come up with a right answer but
rather to elicit questions that you may have about the material. If you are
unsure about your work or answer this is good signal. Please do bring the
problem to class and express your doubts. If you faced a challenge when
trying to solve a problem and you are not sure of your answer or not sure on
how to proceed at some step, chances are, your colleagues have similar
questions and it is worth to discuss it in class.
The lack of an answer key is, for most of the cases, deliberate . It is designed
to give incentives for you to work the problems rather than trying to
memorizing solutions.
Parreiras Microeconomic Theory Spring, 2022 25 / 29FAQ
Questions & Answers
I am trying to solve problems but many of the posted or suggested problems
lack an answer key. How can I check if my work is correct? What use is to
solve a problem if I do not know whether my solution is correct?
The point of solving problems is not to come up with a right answer but
rather to elicit questions that you may have about the material. If you are
unsure about your work or answer this is good signal. Please do bring the
problem to class and express your doubts. If you faced a challenge when
trying to solve a problem and you are not sure of your answer or not sure on
how to proceed at some step, chances are, your colleagues have similar
questions and it is worth to discuss it in class.
The lack of an answer key is, for most of the cases, deliberate . It is designed
to give incentives for you to work the problems rather than trying to
memorizing solutions.
Parreiras Microeconomic Theory Spring, 2022 25 / 29FAQ
Questions & Answers
I am about to graduate. I need an upper level requirement course.
This course is the only one that fits my schedule.
Should I take this class?
It depends on your degree of risk-aversion. The variance of grades
sometimes is high.
Parreiras Microeconomic Theory Spring, 2022 26 / 29FAQ
Questions & Answers
I am about to graduate. I need an upper level requirement course.
This course is the only one that fits my schedule.
Should I take this class?
It depends on your degree of risk-aversion. The variance of grades
sometimes is high.
Parreiras Microeconomic Theory Spring, 2022 26 / 29FAQ
Is this course useful?
for an Econ PhD
I want to go to grad. school in Economics. Microeconomic Theory is
very important for Economics, should I take this course?
No. In grad school, you will have several opportunities to take
Microeconomic Theory classes. If you want to increase your chances of
being accepted by a top program, you should take more classes at the
Mathematics Department.
Parreiras Microeconomic Theory Spring, 2022 27 / 29FAQ
Is this course useful?
Econ and other fields
Would you recommend this course to any Econ, CS or Poli Sci major
or PPE minor?
Of course: if you want to learn more about when markets work (or
fail), this is a good course for you. If you plan to go to Law School,
grad school in Public Policy, Political Science, etc ... or if you just
want to learn for the sake of learning, this is a terrific course for you.
Parreiras Microeconomic Theory Spring, 2022 28 / 29FAQ
Is this course useful?
Econ and other fields
Would you recommend this course to any Econ, CS or Poli Sci major
or PPE minor?
Of course: if you want to learn more about when markets work (or
fail), this is a good course for you. If you plan to go to Law School,
grad school in Public Policy, Political Science, etc ... or if you just
want to learn for the sake of learning, this is a terrific course for you.
Parreiras Microeconomic Theory Spring, 2022 28 / 29FAQ
Is this course useful?
outside academia
I do not want to pursue (at the moment) any other future academic degree
after my graduation, I want to find a job related to economics or business:
industry, commerce or in the financial sector. But in real life people are not
fully rational, will I be able to use any of the “equations” I learn in this class?
What is the use of learning the equilibria of these artificial models?
Chances are, you will not write down a model for some concrete real-life
situation, solve for its equilibrium and make accurate predictions based on it.
But that does not mean that models are useless. Economic Theory may help
you avoid real-life pitfalls. Also check this Noah Smith’s article for several
interesting examples of applications of Microeconomics to real-life.
Parreiras Microeconomic Theory Spring, 2022 29 / 29FAQ
Is this course useful?
outside academia
I do not want to pursue (at the moment) any other future academic degree
after my graduation, I want to find a job related to economics or business:
industry, commerce or in the financial sector. But in real life people are not
fully rational, will I be able to use any of the “equations” I learn in this class?
What is the use of learning the equilibria of these artificial models?
Chances are, you will not write down a model for some concrete real-life
situation, solve for its equilibrium and make accurate predictions based on it.
But that does not mean that models are useless. Economic Theory may help
you avoid real-life pitfalls. Also check this Noah Smith’s article for several
interesting examples of applications of Microeconomics to real-life.
Parreiras Microeconomic Theory Spring, 2022 29 / 29You can also read
